Surge in Equity Markets Helps Boost USD JPY

The USD JPY finished the day on the upside after posting a minor dailyreversal up. Traders seemed a little hesitant to drive this marketthrough a major 50% support level at 94.263 and a major bottom at92.529.

The USD JPY finished the day on the upside after posting a minor daily reversal up. Traders seemed a little hesitant to drive this market through a major 50% support level at 94.263 and a major bottom at 92.529.

Despite assurances from the Bank of Japan last week that it was not considering an intervention, traders seem to be concerned that excessive upside volatility in the Yen may trigger some bearish response from the BoJ even if it is not an intervention.

The strong surge in the U.S. equity markets also had a negative influence on the USD JPY today. Early in the session the USD JPY was trading lower because of concerns about the military events in North Korea. Traders were seeking the safety of the Japanese Yen and pulling out of higher risk assets. Once the bullish U.S. Consumer Confidence report was released, traders actively bought the USD JPY to invest in U.S. equities.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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